Smith & Wesson Brands, Inc.

Last Updated

3 years ago

Share Price

$14.71

Market Cap

$669.46M

Dividend Yield

N/A

EPS

$5.01

P/E

2.94

Smith & Wesson Brands, Inc. designs, manufactures, and sells firearms worldwide. The company offers handguns, including revolvers and pistols; long guns, such as modern sporting rifles, bolt action rifles, and muzzleloaders; handcuffs; suppressors; and other firearm-related products under the Smith & Wesson, M&P, Performance Center, Thompson/Center Arms, and Gemtech brands. It also provides manufacturing services comprising forging, heat treating, rapid prototyping, tooling, finishing, plating, machining, and custom plastic injection molding to other businesses under the Smith & Wesson and Smith & Wesson Precision Components brand names; and sells parts purchased through third parties. The company sells its products to firearm enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement, security agencies and officers, and military agencies. It markets its products through independent dealers, retailers, in-store retails, and direct to consumers; print, broadcast, and digital advertising campaigns; social and electronic media; and in-store retail merchandising strategies. The company was formerly known as American Outdoor Brands Corporation and changed its name to Smith & Wesson Brands, Inc. in August 2020. Smith & Wesson Brands, Inc. was founded in 1852 and is based in Springfield, Massachusetts.

Income

Revenue $1.06B
Gross Profit $448.98M
Net Income $252.05M
Gross Margin 42.39%
Net Margin 23.8%

Cash Flow

Free Cash Flow (FCF) $292.65M
Free Cash Flow To Equity (FCFE) $106.65M
Dividends Paid $-8.22M
Debt Repayment $-186M
Net Stock Repurchased $110M

Balance Sheet

Shareholder Equity $266.38M
Debt To Equity (D/E) 67.57%
Book Value $266.38M
Book Value Per Share (BVPS) $0
Return On Invested Capital (ROIC) 130.08%

The financial metrics for Smith & Wesson Brands, Inc. presented below are for the financial year 2021.

P/E 3.77 Price To Earnings Ratio

P/S 0.9 Price To Sales Ratio

P/B 3.57 Price To Book Ratio

P/CF 3.01 Price To Operating Cash Flow Ratio

P/FCF 3.25 Price To Free Cash Flow Ratio

P/FCFE 8.91 Price To Levered Free Cash Flow Ratio

P/EBT 2.99 Price To Pre-Tax Income

PEG 0.01 Trailing Price/Earnings To Growth Ratio

EV/Sales 0.83 Enterprise Value To Sales Ratio

EBIT/EV 0.38 EBIT To Enterprise Value Ratio

EV/EBITDA 2.43 Enterprise Value to EBITDA Ratio

D/E 0.68 Debt To Equity Ratio

ROE 77.14% Return On Equity

ROIC 130.08% Return On Invested Capital

DPR 3.26% Dividend Payout Ratio

Current Ratio 2.13 Current Liquidity Ratio

EPS Growth 573% Earnings Per Share Growth Rate

Graham Number $22.52 Benjamin Graham's Number

Piotroski Score N/A Piotroski F-Score

Beta N/A Beta Coefficient Value

	2021	2020	2019	2018	2017
Revenue	$1.06B	$678.39M	$638.28M	$606.85M	$903.19M
Cost of Revenue	$610.21M	$443.69M	$412.05M	$411.1M	$527.92M
Gross Profit	$448.98M	$234.71M	$226.23M	$195.75M	$375.27M
Gross Profit Margin	42.39%	34.6%	35.44%	32.26%	41.55%
Operating Expenses	$129.35M	$184.86M	$177.78M	$168.7M	$175.33M
Research & Development Expenses (R&D)	$7.48M	$11.7M	$12.24M	$10.8M	$9.81M
Selling, General & Administrative Expenses (SG&A)	$121.87M	$144M	$107.91M	$130.74M	$137.17M
Other Expenses	$0	$29.15M	$57.63M	$27.16M	$28.35M
Net Income	$252.05M	$-61.23M	$18.41M	$20.13M	$127.85M
Net Profit Margin	23.8%	-9.03%	2.88%	3.32%	14.16%
Operating Income	$319.63M	$-48.82M	$38.06M	$27.05M	$199.94M
Other Income & Expenses (Net)	$-1.67M	$-11.13M	$-9.32M	$-9.43M	$-8.63M
Depreciation & Amortization	$31.57M	$54.06M	$53.86M	$52.08M	$50.21M
Interest Income	$0	$0	$0	$0	$0
Interest Expense	$3.92M	$11.21M	$0	$0	$0
Income Tax Expense	$74.39M	$1.28M	$10.4M	$6.89M	$63.45M
Effective Tax Rate	23.4%	0%	36.18%	39.1%	33.17%
EBITDA	$361.94M	$5.32M	$82.67M	$79.09M	$241.52M
EBIT	$330.36M	$-48.74M	$28.81M	$27.02M	$191.31M
EBT	N/A	N/A	N/A	N/A	N/A
Shares Outstanding	54.61M	54.98M	54.48M	54.06M	55.93M
Diluted Shares Outstanding	55.35M	54.98M	55.22M	54.83M	56.89M
EPS	$4.62	$-1.11	$0.34	$0.37	$2.29
Diluted EPS	$4.55	$-1.11	$0.33	$0.37	$2.25

	2021	2020	2019	2018	2017
Operating Cash Flow	$315.33M	$94.96M	$57.45M	$61.64M	$123.58M
Net Income	$252.05M	$-61.23M	$18.41M	$20.13M	$127.85M
Depreciation & Amortization	$31.57M	$54.06M	$53.86M	$52.08M	$50.21M
Deferred Income Tax	$447K	$-12.01M	$-2.79M	$-8.78M	$-7.84M
Stock-Based Compensation	$4.71M	$2.92M	$7.99M	$7.82M	$8.59M
Change In Working Capital	$-123.28M	$78.48M	$17.72M	$2.49M	$-43.44M
Other Non-Cash Items	$149.84M	$32.74M	$-37.73M	$-12.09M	$-11.8M
Cash From Investing	$-23.4M	$-13.96M	$-34.83M	$-42.16M	$-243.74M
Purchases Of Investments	$0	$0	$0	$0	$0
Sales / Maturities of Investments	$0	$0	$0	$0	$0
Property, Plant & Equipment Investments	$-22.05M	$-13.93M	$-33.95M	$-18.49M	$-34.88M
Net Acquisitions	$0	$0	$-1.77M	$-23.12M	$-211.07M
Other Investing Activites	$-1.35M	$-26K	$894K	$-554K	$2.2M
Cash From Financing	$-303.92M	$3.38M	$-30.47M	$-32.17M	$-9.56M
Debt Repayment	$-186M	$-225.5M	$-82.04M	$-181.95M	$-56.86M
Dividend Payments	$-8.22M	$0	$0	$0	$0
Payout Ratio	3.26%	0%	0%	0%	0%
Net Common Stock Repurchased	$110M	$0	$0	$0	$50.05M
Common Stock Repurchased	$-110M	$0	$0	$0	$-50.05M
Common Stock Issued	$110M	$0	$0	$0	$50.05M
Other Financing Activites	$295K	$228.88M	$51.57M	$149.78M	$97.35M
Accounts Receivables	$-5.82M	$-8.63M	$-29M	$51.38M	$-40.71M
Accounts Payables	$25.54M	$3.68M	$3.39M	$-21M	$1.23M
Inventory	$25.26M	$-421K	$-10.53M	$-16.97M	$-22.17M
Other Working Capital	$142.6M	$265.88M	$187.4M	$169.68M	$167.2M
Capital Expenditure (CAPEX)	$-22.68M	$-14.74M	$-34.47M	$-19.05M	$-35.51M
Effect Of Foreign Exchange On Cash	$0	$0	$0	$0	$0
Net Change In Cash	$-11.99M	$84.38M	$-7.84M	$-12.69M	$-129.73M
Free Cash Flow (FCF)	$292.65M	$80.22M	$22.98M	$42.59M	$88.06M
Free Cash Flow To Equity (FCFE)	$106.65M	$-145.28M	$-59.06M	$-139.35M	$31.2M

	2021	2020	2019	2018	2017
Total Assets	$446.39M	$728.96M	$766.79M	$745.06M	$788.04M
Total Current Assets	$268.25M	$395.85M	$298.68M	$270.36M	$318.44M
Cash & Short-Term Investments	$113.02M	$125.4M	$41.02M	$48.86M	$61.55M
Cash & Cash Equivalents	$113.02M	$125.4M	$41.02M	$48.86M	$61.55M
Short-Term Investments	$0	$0	$0	$0	$0
Net Receivables	$68.35M	$95.03M	$87.37M	$61.26M	$119.09M
Inventory	$78.48M	$164.19M	$163.77M	$153.35M	$131.68M
Other Current Assets	$8.41M	$11.23M	$6.53M	$6.89M	$6.12M
Total Non-Current Assets	$178.13M	$333.11M	$468.11M	$474.7M	$469.6M
Property, Plant & Equipment (PP&E)	$141.61M	$165.99M	$183.27M	$159.13M	$149.69M
Goodwill & Intangible Assets	$23.44M	$157.36M	$274.11M	$304.05M	$310.33M
Goodwill	$19.02M	$83.61M	$182.27M	$191.29M	$169.02M
Intangible Assets	$4.42M	$73.75M	$91.84M	$112.76M	$141.32M
Long-Term Investments	$0	$0	$0	$0	$0
Other Non-Current Assets	$13.08M	$9.76M	$952K	$-1.37M	$-16.04M
Other Assets	$0	$0	$0	$0	$0
Total Liabilities	$180M	$341.84M	$322.35M	$322.91M	$394.87M
Total Current Liabilities	$125.66M	$129.97M	$111.28M	$100.68M	$151.25M
Accounts Payables	$57.34M	$39.2M	$35.58M	$33.62M	$53.45M
Short-Term Debt	$2.4M	$3.66M	$6.98M	$6.73M	$7.32M
Deferred Revenue	$2.91M	$2.4M	$0	$0	$0
Other Current Liabilities	$63.02M	$84.72M	$68.72M	$60.33M	$90.48M
Total Non-Current Liabilities	$54.35M	$211.87M	$211.06M	$222.23M	$243.63M
Long-Term Debt	$38.79M	$199.04M	$194.83M	$180.3M	$210.66M
Other Non-Current Liabilities	$14.66M	$12.83M	$6.45M	$29.03M	$7.35M
Total Debt	$41.18M	$202.7M	$201.81M	$187.03M	$217.98M
Total Shareholder Equity	$266.38M	$387.12M	$444.44M	$422.15M	$393.16M
Common Stock	$74K	$74K	$73K	$72K	$72K
Retained Earnings	$325.18M	$341.72M	$402.95M	$389.15M	$369.16M
Accumulated Other Comprehensive Income Loss (AOCL)	$73K	$73K	$620K	$1.69M	$436K
Other Shareholder Equity	$-58.94M	$45.26M	$40.8M	$31.24M	$23.49M
Total Investments	$0	$0	$0	$0	$0
Net Debt	$-71.83M	$77.31M	$160.8M	$138.18M	$156.43M
Book Value	$266.38M	$387.12M	$444.44M	$422.15M	$393.16M

Discounted Cash Flow

Use the Discounted Cash Flow (DCF) tool to estimate the intrinsic value of Smith & Wesson Brands, Inc. stock.

	Low	Mid	High
Assumptions
Forecast Period	Years
Required Return	%
Revenue Growth	%	%	%
FCFE Margin	%	%	%
Perpetual Growth	%	%	%
Terminal P/FCFE	X	X	X

Assumptions

The number of assumptions to make for each forecast.

Forecast Period

The number of years to forecast future cash flows. These future cash flows are used to determine the intrinsic present value for the stock.

It is generally recommended to select a longer period for more established companies with stable financial histories.

Forecast Period

The compounding annual rate of return required, according to your investment objectives. This is used to discount back future cash flows.

Revenue Growth

Estimate the annual compounding revenue growth rate. You can use the historical compounding annual growth rates provided below as a guide.

1 Year N/A
3 Years N/A
5 Years N/A
10 Years N/A

Levered Free Cash Flow Margin

Estimate levered free cash flow (FCFE) as a percentage of revenue. You can use the historical margins provided below as a guide.

1 Year N/A
3 Years N/A
5 Years N/A
10 Years N/A

Perpetual Growth Rate

Estimate the compounding annual growth rate at which revenues will grow in perpetuity after the forecast period. This is the first method used to calculate the terminal value.

Values of between 2% and 5% are generally recommended.

Price To Levered Free Cash Flow

Estimate the price to levered free cash flow (P/FCFE) for the stock after the forecast period. This is the second method used to calculate the terminal value.

This method for calculating the terminal value can be preferred for shorter forecast periods. You can use the historical rations provided below as a guide.

1 Year 8.91
3 Years N/A
5 Years N/A
10 Years N/A

Chief Executive Officer (CEO)	Mr. Mark Peter Smith
Full-Time Employees	2.24K
Industry	Aerospace & Defense
Sector	Industrials
Country	US
Website	https://www.smith-wesson.com